Oil prices fall over 6% due to tariffs and unexpected Opec output hike

Oil prices plummeted on Thursday, driven by new U.S. import tariffs and an unexpected decision by Opec to increase production from May.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

Oil prices registered a sharp drop on Thursday following a dual announcement that shook the global market: the implementation of new import tariffs by the United States and a faster-than-expected production increase decided by the Organization of the Petroleum Exporting Countries (Opec). This combination has fuelled concerns over a slowdown in global economic growth, which could dampen crude demand.

Trade pressure and economic uncertainty

At 12:05 GMT (14:05 in Paris), the price of a Brent barrel from the North Sea for June delivery fell by 5.67% to $70.70, while the American benchmark, West Texas Intermediate (WTI), for May delivery dropped 6.05% to $67.37. This trend is attributed to a renewed protectionist push from the White House, which introduced a minimum 10% duty on all imports, with additional tariffs targeting countries considered economically adversarial.

The People’s Republic of China, the world’s leading crude oil importer, now faces a 34% import tax on its goods to the U.S., in addition to the existing 20% tariffs. Although energy products are formally exempted, the sector remains vulnerable to macroeconomic consequences. Arne Lohmann Rasmussen, analyst at Global Risk Management, notes that “energy products are generally sensitive to economic slowdowns.”

Opec’s shift in strategy and market response

Simultaneously, Opec+ announced a larger-than-expected increase in oil production starting in May. The oil cartel, along with its partners, plans an output adjustment of 411,000 barrels per day, significantly above the 137,000 barrels expected based on April’s pace. This decision accelerates the previously gradual reintroduction of withheld volumes by eight member states.

According to Ole R. Hvalbye, analyst at SEB, “it certainly adds additional weight to the market, a double impact.” He also remarked that the current dynamic may reflect “an Opec+ more influenced by politics,” in a context where President Donald Trump reportedly pressured the group to increase global supply.

Analysts now anticipate potential economic retaliation from U.S. trade partners. Such developments could extend the ongoing price decline, especially as underlying supply and demand fundamentals remain under strain.

Reliance Industries reported a 9.67% increase in net profit in the second quarter of fiscal year 2025–2026, driven by recovering petrochemical margins and continued growth in its retail and telecom operations.
An operational fire was contained at the largest refinery in the US Midwest, causing a temporary shutdown of several processing units, according to industry data.
The European Commission imposes new rules requiring proof of refined crude origin and excludes the use of mass-balancing to circumvent the Russian oil ban.
The Dutch Supreme Court has rejected Russia's final appeal, confirming a record $50bn compensation to former Yukos shareholders, ending two decades of legal battle.
A ruling by Namibia's High Court upheld the media regulator’s decision that the state broadcaster NBC failed to ensure balance in its coverage of ReconAfrica’s oil operations.
The Canadian oilfield services provider announced a $75mn private placement of 6.875% senior unsecured notes to refinance bank debt and support operations.
Commercial crude reserves in the United States posted an unexpected increase, reaching their highest level in over a month due to a marked slowdown in refinery activity.
Beijing calls Donald Trump's request to stop importing Russian crude interference, denouncing economic coercion and defending what it calls legitimate trade with Moscow.
India faces mounting pressure from the United States over its purchases of Russian oil, as Donald Trump claims Prime Minister Narendra Modi pledged to halt them.
Three Crown Petroleum has started production from its Irvine 1NH well and plans two new wells in Wyoming, marking a notable acceleration of its deployment programme in the Powder River Basin through 2026.
The International Monetary Fund expects oil prices to weaken due to sluggish global demand growth and the impact of US trade policies.
With lawsuits multiplying against oil majors, Republican lawmakers are seeking to establish federal immunity to block legal actions tied to environmental damage.
The United Kingdom targets two Russian oil majors, Asian ports and dozens of vessels in a new wave of sanctions aimed at disrupting Moscow's hydrocarbon exports.
Major global oil traders anticipate a continued decline in Brent prices, citing the fading geopolitical premium and rising supply, particularly from non-OPEC producers.
Canadian company Petro-Victory Energy Corp. has secured a $300,000 unsecured loan at a 14% annual rate, including 600,000 warrants granted to a lender connected to its board of directors.
Cenovus Energy has purchased over 21.7 million common shares of MEG Energy, representing 8.5% of its capital, as part of its ongoing acquisition strategy in Canada.
In September 2025, French road fuel consumption rose by 3%, driven by a rebound in unleaded fuels, while overall energy petroleum product consumption fell by 1.8% year-on-year.
Société Ivoirienne de Raffinage receives major funding to upgrade facilities and produce diesel fuel in line with ECOWAS standards, with commissioning expected by 2029.
India is funding Mongolia’s first oil refinery through its largest line of credit, with operations scheduled to begin by 2028, according to official sources.
Aramco CEO Amin Nasser warns of growing consumption still dominated by hydrocarbons, despite massive global energy transition investments.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.